Bitcoin Holds Firm Between $90,000 and $100,000 Amid Market Volatility, Analysts Remain Bullish

Bitcoin (BTC) continues its consolidation phase between $90,000 and $100,000, testing investor sentiment as the market oscillates between fear and greed. On Monday, the cryptocurrency dipped below $90,000 but rebounded strongly, trading above $96,500 by Tuesday, marking an 8% recovery.

Bitcoin’s “Normal Correction”

Bitcoin’s recent price action reflects a 15% decline from its recent highs, which Tom Lee, head of research at Fundstrat, described as a “normal correction” for such a volatile asset. Speaking to CNBC, Lee emphasized that Bitcoin’s drawdowns in the current cycle have been relatively mild, ranging from 15%-20%, compared to previous bull markets, where declines of 30%-50% were common. This moderation signals Bitcoin’s growing maturity as an asset class.

Key Support Levels: $70,000 and $50,000

Lee identified $70,000 as a critical support level, underpinned by Fibonacci retracement methodologies, which analyze pullbacks during rallies. He cautioned that if $70,000 fails to hold, Bitcoin could test the $50,000 mark. Common Fibonacci levels, including 23.6%, 38.2%, 50%, and 61.8%, are widely used by analysts to predict price movements in such scenarios.

Long-Term Outlook Remains Bullish

Despite the short-term volatility, Lee remains optimistic about Bitcoin’s prospects for 2025, maintaining an end-of-year target range of $200,000 to $250,000. “Bitcoin will continue to stand out as a premier asset,” Lee stated, highlighting its resilience during this cycle.

Signs of Market Maturity

Data from Glassnode supports this optimism, showing that Bitcoin’s drawdowns in the current cycle are milder than in past bull markets. This development suggests the asset is becoming more stable and appealing to institutional investors.

As Bitcoin continues to consolidate within this range, market participants are closely watching support levels and technical indicators, anticipating whether it will break higher or test lower levels in the coming weeks.

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